Strategic Investor

Definition

A strategic investor invests for business synergies (partnerships, product integration, eventual acquisition) in addition to financial return, typically a corporation or its venture arm.

How it comes up in fundraising

Strategics can add distribution and credibility, but their terms deserve scrutiny: rights of first refusal or exclusivity can chill future acquirers.

Frequently asked questions

When should I take strategic money?

When the strategic is a natural customer or channel and invests on clean, financial-investor terms without exclusivity or ROFRs on the company.

Do strategics lead rounds?

Sometimes at later stages; early on they more often follow a financial lead to avoid setting terms.

Cite this term

Round Funded. "Strategic Investor." Startup Fundraising Glossary.

Stable URL, it will not change: https://www.roundfunded.com/en/glossary/strategic-investor

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